2023 (7) TMI 559

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....ssee without considering the fact that even though the assessee had received pay order before 15/12/2023, the assessee failed to estimate his income and pay tax thereon on the capital gain earned during the year as per section 209(1)(a) of the Income Tax Act, 1961. Rs. 30,11,069/-  The case is covered under the exception clause (c) [Revenue Audit Objection Accepted by the Dept.] mentioned in para 10 of CBDT circular No.03/2018 2 The appellant prays that the order of the ld.CIT(A) be held to be bad in law and be quashed and that the order passed by the AO u/s. 154 of the Act be restored.   Total tax effect Rs. 30,11,069/- 2. The relevant facts in this case are that the assessment proceedings in assessee's ca....

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....e ld. CIT(A), he observed that though the terms and conditions of the sale transaction might have been finalized by the time pay order was purchased on 14/12/2013 by the buyer, legally no transfer had taken place till 19/12/2013. The clearing of the pay order on 16/12/2013 was only an advance payment and in the absence of a valid registration, it does not partake the character of sale consideration. Till the time, the sale is duly registered, the receipt of money by the assessee would continue to remain a liability and it does not partake the character of income accrued. Liability to pay advance tax can arise only on the accrual of income in the hands of the assessee and not prior to that. Therefore, on the facts of the case, income from sa....